AN ACT STRENGTHENING THE INSURANCE INDUSTRY

Case Overview and Summary

Summary of the Insurance Code of the Philippines

Definition of Terms
- Defines key terms used in the Code, such as "contract of insurance", "doing an insurance business", "Commissioner", etc. (Section 2)

Contract of Insurance
- Specifies what can be insured and the requirements for an insurable interest (Sections 3-19)
- Outlines provisions related to concealment and representation in insurance contracts (Sections 26-48)
- Defines the policy of insurance and its components (Sections 49-62)
- Covers warranties in insurance contracts (Sections 67-76)
- Regulates premium payments and return of premiums (Sections 77-84)
- Addresses loss, notice of loss, and double insurance (Sections 85-97)

Reinsurance Transactions
- Governs reinsurance transactions, including requirements for ceding risks to unauthorized foreign insurers (Sections 222-228)

Annual Statement and Policy Forms
- Requires annual statements from insurance companies and mutual benefit associations (Sections 229-231)
- Mandates approval of policy forms by the Commissioner (Section 232)
- Specifies provisions for life insurance policies (Section 233), group life insurance policies (Section 234), industrial life insurance policies (Sections 235-237), and variable contracts (Sections 238-246)

Claims Settlement and Examination of Companies
- Regulates claims settlement practices and prohibits unfair claim settlement (Sections 247-251)
- Authorizes the Commissioner to examine insurance companies (Sections 252-253)
- Allows the Commissioner to suspend or revoke authority, appoint a conservator, and initiate proceedings upon insolvency (Sections 254-257)

Consolidation, Merger, Mutualization, and Withdrawal
- Governs consolidation and merger of insurance companies (Sections 258-267)
- Outlines the process for mutualization of stock life insurance companies (Sections 268-280)
- Regulates the withdrawal of foreign insurance companies from the Philippines (Sections 281-287)

Professional Reinsurers and Holding Companies
- Establishes requirements for professional reinsurers (Sections 288-289)
- Defines and regulates holding companies in the insurance industry (Sections 290-306)

Sales Agencies and Technical Services
- Licenses and regulates insurance agents, brokers, reinsurance brokers, resident agents, non-life company underwriters, adjusters, and actuaries (Sections 307-347)
- Governs rating organizations and rate-making (Sections 348-372)
- Establishes a code of conduct for insurance intermediaries (Section 374)
- Allows for bancassurance arrangements (Sections 375-377)

Security Fund and Compulsory Motor Vehicle Liability Insurance
- Creates a Security Fund for unpaid claims against insolvent insurers (Sections 378-385)
- Mandates compulsory motor vehicle liability insurance (Sections 386-402)

Mutual Benefit Associations and Trusts for Charitable Uses
- Regulates mutual benefit associations, including licensing, reserves, investments, and dissolution (Sections 403-423)
- Governs trusts for charitable uses (Sections 424-428)

Trust Business and Self-Regulatory Organizations
- Allows insurance companies to engage in limited trust business (Section 429)
- Authorizes the Commissioner to register and regulate self-regulatory organizations (Sections 430-436)

Powers and Functions of the Insurance Commissioner
- Outlines the administrative and adjudicatory powers of the Insurance Commissioner (Sections 437-439)
- Establishes fees and funding sources for the Insurance Commission (Sections 440-441)

Miscellaneous Provisions
- Imposes penalties for violations of the Code (Sections 442-443)
- Provides for transitional arrangements and repeals inconsistent laws (Sections 444-448)